Four licenses in Danish sector to Hydro

March 22, 2006, 00:00 CET

Hydro has been awarded four partnership licenses in the sixth concession round in the Danish offshore sector of the North Sea.

“We delivered a comprehensive application for exploration areas in the sixth concession round in the Danish sector last November together with German energy company Wintershall. We have been awarded three large-scale licenses with Wintershall as operator,” says Lars Christian Alsvik, head of the Development Norway sector in Hydro's Oil & Energy business area.

The fourth license is located near the Hejre license where Hydro is a partner with ConocoPhillips as operator.

”We are very pleased with the awards. There was a lot of interest in the four areas, and we got what we wanted,” Alsvik says.
He says the licenses have interesting potential. They are located in shallow water in an area with good existing infrastructure. With today’s oil prices even small finds can be commercially interesting here.

“We still have faith in the remaining resources in the North Sea, both on the Norwegian and Danish sides. The geology does not change at the countries’ borders. We’ll now use the expertise we’ve developed through many years in the Norwegian sector to seek further finds in Denmark,” says Alsvik.

Hejre matures

Activity levels are high on the two licenses Hydro already participates in. An appraisal well on Hejre in 2005 confirmed oil in place. Operator ConocoPhillips is now working on a plan for development and operation (PDO) on Hejre in 2007, with a possible production start in 2009. A new well is being planned for the Stork prospect this summer.

  • Shares in license 1/06:
    ConocoPhillips (operator) - 24 percent
    Saga Petroleum Danmark* - 20 percent
    Petro-Canada - 20 percent
    DONG E&P - 16 percent
    Nordsøfonden (the Danish state direct investment) - 20 percent
  • Shares in licenses 4/06, 5/06 and 6/06:
    Wintershall (operator) - 35 percent
    Saga Petroleum Danmark* - 30 percent
    EWE - 15 percent
    Nordsøfonden (the Danish state direct investment) - 20 percent

    *Saga Petroleum Danmark is the name of Hydro’s interests in Denmark after the merger with Saga Petroleum in 1999/2000. Saga then had partnership shares in two licenses, including the Hejre license.a